Martin Lewis says the document is one of the most important people have(Image: ITV)
Money Saving Expert Martin Lewis has urged people to spend £82 on a document he deems ‘more important than a will. ‘ The personal finance guru revealed that he’s had one since his 30s and emphasised its importance.
During his BBC podcast, Mr Lewis stressed the importance of obtaining Power of Attorney. A Lasting Power of Attorney (LPA) is a legal document that allows you, the ‘donor’, to appoint one or more individuals, known as ‘attorneys’, to assist you in making decisions or to make decisions on your behalf.
The purpose of an LPA is to give families more control over what happens to a person if they have an accident or illness and are unable to make their own decisions – they might ‘lack mental capacity’. At present, it costs £82 – but this will increase to £92 from November 17, according to government warnings.
Mr Lewis stated: “Wills are really important, but in my view, a power of attorney is even more so, which is why it’s worrying that far fewer people have them. Best is to have both. But when you’re dead, you’re dead, it’s just a question of where your assets go.
“But without a power of attorney, if you lose mental capacity, all your assets can be locked away with your loved ones unable to access them to pay for, say, your mortgage or even to pay for your care. What they then have to do is go through the nightmare of goingm to the court of protection that can take months or years is extremely stressful and costs a lot of money,” reports the Manchester Evening News.
“So having a lasting power of attorney set up in advance where you’ve nominated trusted people to look after your finances if and only if you lose capacity so they can help you out, is crucial. Now you might just be thinking, yeah, that’s good for the elderly. No, I’m 53, I know, I look younger. But I’ve had one in place since my 30s. In my view, this is crucial peace of mind protection. If you haven’t got one, I know it’s a grown up thing to think about, but it’s also a really important thing to think about.”
There are two types of Lasting Power of Attorney (LPA):.
Health and Welfare Lasting Power of Attorney
This LPA allows an attorney to make decisions about things like:
Your daily routine, for example washing, dressing, eatingMedical careMoving into a care homeLife-sustaining treatmentProperty and Financial Affairs Lasting Power of Attorney
This LPA allows an attorney to make decisions about money and property for you, for example:
Managing a bank or building society accountPaying billsCollecting benefits or a pensionSelling your home
For more information on Power of Attorney, visit the government website here.